3. Recap
• Last session we discussed about
➢Fayol's Classification of business Activities
➢Basic Functions of Manager
➢Qualities and Skills of Manager
4. Objective of Management thought
• The aim of the chapter is to make the student to learn the
different schools of thoughts of Management and enable them
to explore different approaches of management
6. Fayol’s principles of modern management
1. Division Of Labour
2. Authority And Responsibility
3. Discipline
4. Unity of Command
5. Unity Of Direction
6. Subordination of Individual interest to Group Interest
7. Remuneration
7. Fayol’s principles of modern management
8. centralisation
9. Scalar Chain
10. Order
11. Equity
12. Stability Of Staff
13. Initiative
14. Esprit de Crops
8. 1. Division of work: Division of work can give maximum productivity
and efficiency.
➢technical and managerial activities can be performed in the best
manner
2. Authority and Responsibility:
➢right to give order is called authority
➢Obligation to accomplish is called responsibility
➢They are complementary and mutually interdependent.
9. 3. Discipline:
➢rules and regulations
➢policies and procedures
➢Penalties (punishment) for non-obedience or indiscipline
➢clear and fair agreement on the rules and objectives
10. 4. Unity of Command:
➢receive orders and instructions only from one superior (boss). In
order to avoid any possible confusion and conflict
5. Unity of Direction:
➢organization must work together to accomplish common
objectives.
11. 6. Subordination of Personal Interest to General or Common Interest
➢Each shall work for all and all for each
➢common interest must be supreme
7. Remuneration: (motivator for good performance)
➢Fair pay
➢non-financial rewards
➢Exploitation must be eliminated
12. 8. Centralization:
➢good balance between centralization and decentralization.
➢Extreme centralization and decentralization must be avoided.
9. Scalar Chain:
➢chain or hierarchy of command linking all members of the
organization.
➢Short Circuited Chain to Make communication effective
13. 10. Order:
➢ Designated Place for everything
11. Equity:
➢equity (i.e., justice) must be there as group of people involved in
joint effort
12. Stability of Tenure:
➢employees and managers must have job security
➢demonstrate efficiency with tenure
14. 13. Initiative:
➢Creative thinking
➢capacity to take initiative
➢Sound managerial planning
14. Esprit de corps
➢Union is strength
➢co-operation Pride, loyalty and sense of belongingness
15. To Conclude
Discussed about Division of work, authority and Responsibility ,
Discipline, Unity of Command, Unity Of Direction, Subordination of
Individual interest to Group Interest, Remuneration.
16. References
Adiga, K. S. (2007). Principles of Management. Shubha Prakashana.
Chhabra, T. N. (2008). Principles and Practice of Management (6th ed.).
Dhanpat rai and Co (P) Ltd.
Koontz, H., & Weihrich, H. (2015). Principles of management -
Essentials of Management (10th ed.). Tata McGraw Hill.
Prasad, L. M. ,(2013). Principles and Practice of Management (6th ed.).
Sultan Chand & Sons.
Raman , B. S., & Chandrashekar, K. (2019). Principles of Management
(First ed.). New United Publishers Mangalore.
17. MCQ’s
• ___________ principle gives maximum productivity and efficiency
according to Henry Fayol
a. Division of work
b. Authority
c. Decentralisation
d. All the Above
Ans: Division of work
18. MCQ’s
• According to Fayol right to give order is called ______________
a. Responsibility
b. Authority
c. Obligation
d. None of the Above
Ans: Authority
19. MCQ’s
• receive orders and instructions only from one superior (boss). Is
called as
a. Unity of Command
b. Division of work
c. Discipline
d. All The Above
Ans: Unity of Command
20. MCQ’s
• organization must work together to accomplish common objectives is
called as__________ by Henry Fayol
a. Discipline
b. Scalar
c. Accounting
d. Unity of Direction
Ans: Unity of Direction
21. MCQ’s
Subordination of Personal Interest to General or Common Interest
This principle is proposed by
a. Henry Fayol
b. Herbert Simon
c. F.W. Taylor
d. Peter Drucker
Ans: Henry Fayol
